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What is the 'Foreign Exchange' Foreign exchange is the exchange of one currency for another or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around the clock. The largest trading centers are London, New York, Singapore and Tokyo.

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The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices.

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Market share of forex currencies by turnover 2016 | Statistic

Another name for global currency is reserve currency. Of these, the U.S. dollar is the most popular. It makes up 64 percent of all known central bank foreign exchange reserves. That makes it the de facto global currency, even though it doesn't hold an official global title.